Simplified STEEPLED Analysis
It seems impossible to survive in a modern business without conducting a deep analysis of the company’s position in the internal and external environment, strengths and weaknesses, a series of factors that are said to have a direct or indirect influence on business performance. It is impossible to do business with your eyes closed without knowing where you will be in the near future. Of course, it is impossible to imagine all the problems and challenges that business owners, shareholders, and senior managers may face. However, it is quite possible to assess the position of the company and the present time and thus make forecasts about the possible problems that the company will face in the future. Solving problems before they occur is a part of strategic planning that is impossible without extensive analysis. There are several types of analysis that are used for different purposes. Some of them evaluate current performance for immediate goals, while others work for the long term. In this article we will talk about an analysis that covers the most important aspects and environments in which any company operates. STEEPLED analysis is an extended version of the PEST and PESTEL analysis types that is quite popular in various industries. Now let’s discuss the STEEPLED analysis and give a brief characteristic of each element.
STEEPLED is short for Social, Technological, Educational, Ethnic, Political, Legal, Economic and Demographic Factors. As already stated above, this is an extended mode of PEST and PESTEL analysis and thus covers more factors thus giving senior managers and business owners more comprehensive information. What do these factors mean?
The social factor focuses on following trends and social trends, as well as attitudes and contact patterns. Every company is an inseparable part of society and therefore must function according to social rules and norms. Companies must take advantage of social trends to make a profit. The technological factor perhaps requires no explanation. It is obvious that to achieve success in any business and industry it is imperative to make effective use of the latest technologies and innovation. The recent success of world famous IT companies is a clear example. The education factor covers all training and coaching topics. It means that the company’s staff must constantly develop and improve their knowledge and skills. Senior managers and business owners must understand that qualified and loyal staff is the most valuable capital they have. Ethnic factors are extremely important in multinational societies. It also plays an important role in human resource management where discrimination must be avoided. As for the political factor, when he learned that politics plays an important role in social life and influences the country’s economic performance. That is why it is imperative to keep track of political events and developments to forecast possible economic changes. The economic factor is probably the most important and substantial since every business operates in a certain economy. Weak economies do not offer great opportunities for business growth. Finally, the demographic factor must be properly evaluated when launching a product or service in a new market. Population density, average age and social origin are very important for companies looking to sell products and services.